In the past few years, sound has become an increasingly important element in games. As game sound effects have become more advanced, designers have started using sound as a key element. It's now more important than ever that games feature a wide variety of diverse, realistic sound effects, as well as high-quality, professionally recorded speech and dialogue. Here is the winner of the 2001 Best Sound Award:
Soul Reaver 2

Publisher: Eidos Interactive
Developer: Crystal Dynamics
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Throughout the last several years, voice work and sound effects have become increasingly impressive in video games, with some games becoming almost film-like in the caliber of their production. No discussion on the topic would be complete without mentioning Eidos' Soul Reaver 2--at length.
Soul Reaver 2's story sequences are voiced by notable voice talents such as Michael Bell, Tony Jay, and Simon Templeman (who reprise their roles of Raziel, the Elder God, and Kain from the first Soul Reaver), and they're joined by Star Trek: Deep Space Nine's Rene Auberjonis, who plays a character who is both new and old to the game series. Their performances are among, if not, the best of any game made to date.
The game's sound effects are almost equally as impressive, and change noticeably in accordance with the dimensions of the room you're in at the time. Swing your soul reaver through the air in a hallway and it makes a small, claustrophobic "swish!" Swing it in a large room, and you'll hear its echoes reverberate off the distant walls.
During a year when video game voice work and sound effects have never been better, Soul Reaver 2 still stands out among those at the top.
Other Nominees:

Gran Turismo 3 A-Spec
Grand Theft Auto III
Halo
Metal Gear Solid 2: Sons of Liberty